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The small industries in Tamil Nadu will be taking advantage of more self-reliance in defence production announced by Union Finance Minister Nirmala Sitharaman during the 2022 budget speech.

Sitharaman, while presenting the budget on February 1 had said 68 per cent of capital procurement will be earmarked for the defence industry in the 2022-23 Budget which is 10 per cent higher than the 2021-22 Budget.

She said: "Defence Research and Industry will be opened up for industry, startups, and academia with 25 per cent of defence R&D Budget earmarked for it. Private industries will be encouraged to take up design and development of military platforms and equipment in collaboration with Defence Research and Development Organisation (DRDO) and other organisations through Special Purpose Vehicles (SPV) models."

Several companies in Coimbatore, Hosur, and Tiruchi are already in the defence production and research sector in Tamil Nadu and are in association with the DRDO. The proposed defence corridor is also expected to create an ecosystem where industries will be encouraged to take up more defence projects.

Tamil Nadu has over 120 aerospace manufacturing companies and 700 suppliers to various Defence Public Sector Undertakings (PSUs) already and with the new announcement in budget all these companies will get sizeable work for supplying components to major productions in the defence sector.

G. Satheesh Reddy, Chairman DRDO and secretary department of defence (R&D) in a statement, said: "The DRDO is planning an R&D centre in Tamil Nadu defence corridor where industries will be groomed by our scientists. An SPV will be formed soon which will lead to industries partnering DRDO in all stages of the supply chain from design, development, testing, production, marketing, and exports."

The DRDO chief also said that this was the apt time for the Indian industries to take advantage of the latest policies of the government and join hands with DRDO to deliver defence systems and technologies to the Indian defence forces.

Other than small industries in Tamil Nadu spread across the industrial hubs of Coimbatore, Tiruchi, Hosur, big companies in the state like L&T and Ashok Leyland are already production partners of the DRDO.

The DRDO, according to insiders, will soon be grooming and developing several Tamil Nadu companies, both small and big, to advance design and development capabilities.

The main battle tank Arjun Mk-1A was developed by Combat Vehicles Research and Development Establishment in Chennai in collaboration with other DRDO labs.